September 26, 2024
New Delhi, India
Upcoming IPO
Indogulf Cropsciences Limited, a leading Indian manufacturer of crop protection products, plant nutrients, and biologicals, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on September 25, 2024. The company aims to raise up to ₹200 crore through an initial public offering (IPO).
Key Highlights of the IPO:
- IPO Structure: The proposed IPO will include a fresh issue of shares worth ₹200 crore and an Offer for Sale (OFS) of up to 38.54 lakh equity shares from existing shareholders, including Om Prakash Aggarwal (HUF) and Sanjay Aggarwal (HUF), who will sell 15.4 lakh and 23.13 lakh shares, respectively.
- Utilization of Funds:
- ₹100 crore for working capital.
- ₹40 crore for debt repayment.
- ₹14 crore for capital expenditure, including the setup of a dry flowable (DF) plant in Sonipat, Haryana.
- The remaining funds will go towards general corporate purposes.
- Company Background: Founded in 1993, Indogulf Cropsciences has established a strong presence in the agrochemical sector, with four manufacturing facilities across Jammu & Kashmir and Haryana. The company offers a wide range of products, including crop protection chemicals, plant nutrients, and biological solutions, and operates both domestically and internationally, exporting to over 34 countries.
- Financial Performance: For the fiscal year ending in March 2024, Indogulf reported:
- Net profit of ₹28.2 crore, a 25.9% increase from the previous year.
- Revenue from operations at ₹552.2 crore, a slight growth of 0.5%.
- EBITDA rose 21.5% to ₹59.4 crore, improving margins by 190 basis points to 10.8%.
- Competitors and Market Presence: Indogulf faces competition from companies like Aries Agro, Basant Agro Tech India, Best Agrolife, and others. The company has a solid foothold in India, with operations across 22 states and 3 Union Territories, and boasts a client roster including Krishi Rasayan Exports, Parijat Industries India, and BR Agrotech.
With Systematix Corporate Services appointed as the sole merchant banker, Indogulf Cropsciences’ IPO is expected to strengthen its position in the growing Indian agrochemical industry. As the company looks to expand its manufacturing capacity and enhance its operational efficiency, investors are keeping a close eye on this public offering, which could mark a significant step forward for the company and the sector as a whole.
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